Blockades on the line

31 December 2010

Some regional Indian cement manufacturers are expressing concern as the agitating local Gujjars continue to block major railway lines in Rajasthan. The blockade on Jaipur-Delhi, Delhi-Mumbai and Jaipur-Udaipur routes has severely affected the dispatches of Rajasthan-based cement units. This is going to make serious dent in their respective market shares, especially in the northern markets.

Companies fear long-term business losses as cement makers based at locations other than Rajasthan may eat into their market share by meeting the demand. It is also likely to affect the revenues of these companies during the third quarter. Binani Cement president (Logistics) Krishan Goenka told local reporters that the disruption in supply may affect their market share in North India.

“Demand has just picked up in North. But we are not in position to fulfil the demand due to disruption in freight services. We are badly hit beyond Rewari. However, supply to other parts of the country is unaffected,” he said. The company ships 7500 tonnes of cement daily out of which 3000 tonnes go to North Indian markets.

The situation is said to be similar for J K Lakshmi Cement , which has its manufacturing unit at Sirohi, said a senior official of the company.
Published under Cement News